The Peru-Bolivian Confederation is a plan that…

The Peru-Bolivian Confederation is a plan that attempts to reunite the Alto Perú ("Upper Peru", now Bolivia) and Bajo Peru ("Lower Peru", now simply Peru) into a single political and economic entity.

This integration is based not only on historical, cultural, and ethnic reasons, but also on sound economic motives.

The union is an attempt by Marshal Andrés de Santa Cruz to restore the ancient commercial routes and promote a policy of open markets.

In Peru, Santa Cruz begins by having an assembly proclaim on March 17, 1836 the Republic of South Peru, followed on August 11 by a similar proclamation of the Republic of North Peru.

In each case, he becomes the new state's supreme protector, a president with full powers.

After a period of intense political unrest, the Peru-Bolivian Confederation is proclaimed on October 28, 1836.

Santa Cruz becomes its supreme protector, as well as supreme protector of each of the Peruvian states and president of the Bolivian Republic.

The new confederation is thus composed of three states: North-Peru, South-Peru and Bolivia, and its capital is the city of Tacna, in southern Peru.

The creation of this new nation is very well received in the south of Peru, since this area is able to benefit fully from the lifting of the previous commercial restrictions, but is bitterly resented by the elite of Lima and the north of Peru, which has traditionally benefited from a close commercial relationship with Chile.

As Santa Cruz, who clams direct descent from Inca rulers through his mother, has openly declared the Inca Empire to be awoken, his state is perceived as a threat to regional power balance and a menace to countries on former Inca territory.